The three challenges!
Deal with these and fix your debt
The Three Challenges!
In our research, which has included the review of tens of thousands of consumers with credit problems, we have discovered that the consumer with credit problems faces at least three challenges. We hope that you can utilize the information we have provided here and successfully address the three challenges, which we have listed below:
1. How can you overcome your distaste for the collection process and commit to resolving your delinquent and defaulted debts to the best of your ability?
This is not easy. We have found that consumers usually feel threatened and harassed by collectors, which provokes them to ignore what he has to say or to hang up on him. A collector will call a consumer at his home or place of work and demand that he address his unpaid debts, which often makes the consumer feel terribly, since he is often in his predicament by chance, not by choice. Unfortunately, many consumers yield to their emotions and never focus on the issues and attempt to solve them. They sink into a pattern of deliberate avoidance, which then leaves these issues unresolved, most likely forever. When this occurs the consumer is positioned for a host of additional, sometimes excessive long term costs as he is forced to borrow at very
high rates for many years, which can cause him interest expenses 50% - 65% greater than need be.
2. How can you negotiate with the numerous collectors who are calling you so that your credit risk profile is improved, while you are resolving your delinquent and defaulted debts?
Some consumers have found this challenge exceptionally difficult. Most consumers find that they are being asked to address a collector’s demands for money at a time when their income has been reduced or eliminated. We plan to help with this challenge, which will include successful negotiating and astute financial management.
Once this consumer overcomes this challenge, he will be able to borrow more easily in the future and at lower rates, which will mean thousands and thousands in savings on interest expenses and other finance charges over the next few years. In many cases these savings equal or exceed the costs of resolving his current spate of problems, which will net our consumer a return on his investment.
3. How can you find ways to lead an attractive lifestyle, while you are building your disposable income by curbing your consumption of higher cost financial services?
A noteworthy number of consumers with past credit problems have found ways to reduce their consumption of financed goods and services. In the process, they have also discovered many benefits, ranging from lower overall monthly payments to increased financial resources to better borrowing terms. This consumer needs to avoid the purchase of large capital items, such as a car, until he has resolved many of his outstanding problems. Otherwise, he will be borrowing at exceptionally higher rates, those offered only to the highest risk consumers. These services are exceptionally costly and cause the consumer to incur as much as 50% - 65% more interest expense on every purchase he finances. Before we proceed with how to address these three challenges, we need to provide you with some details. In the following, we will discuss how the lenders view lending to this kind of consumer and what the implications are for this consumer. We will also discuss how the collection industry works and what some of their challenges are. With this knowledge, we hope that you can better relate to our approach to the three challenges.
How Consumers Respond
Consumers seem to fall into three groups.
1. Those who repay all or most of the balance of their defaulted debts and do so with a minimum number of payments.
2. Those who repay their defaulted debt by accepting and performing on a more complex, longer term financial instrument, such as a rewritten note that spreads repayment out over a number of years or some other kind of instrument.
3. And, those who do not repay much if any at all.